Term of the Day

non profit organization (NPO)

Associations, charities, cooperatives, and other voluntary organizationsformed to further cultural, educational, religious, professional, or public service objectives. Their startup funding is provided by their members,trustees, or others who do not expect repayment, and who do not share in theorganization’s profits or losses which are retained or absorbed. Approved, incorporated, or registered NPOs are usually granted tax exemptions, andcontributions to them are often tax deductible. Most non governmental organizations (NGOs) are NPOs. Also called not for profit organization.
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Usage Example
Unlike for profit companies, non profit organizations use their surplus of funds for self-preservation or expansion to further their goals, rather than distribute the surplus as dividends.